L&G gives brokers option to bypass packagers on seconds

Legal & General Mortgage Club is offering DAs the option of bypassing master brokers to access second charge loans from lenders directly, which should push down costs for customers.

The initial panel of lenders includes Precise Mortgages, Prestige Finance, Paragon Bank and United Trust Bank, with further lenders expected to be added over the next couple of months.

Leading up to the implementation of MCD, L&G launched a successful master broker referral panel to support intermediaries who wanted to discuss second charges with customers.

The company is now expanding that service, allowing brokers who wish to directly advise to go straight to certain lenders.

Jeremy Duncombe, director of Legal & General Mortgage Club, said: “In this post Mortgage Credit Directive environment, it is important for us to provide members with a wider choice of products, including second charges.”

Duncombe sought to reassure master brokers who could see business volumes drop dramatically unless they can match lenders’ direct fees however.

“Our proposition will now enable us to work with lenders and master brokers to develop new products and criteria for this market, increasing awareness of the opportunities, and providing a better outcome for customers.”

Darrell Walker, head of sales, second charge and commercial at OneSavings Bank, said: “We are very pleased to support L&G’s initiative to provide intermediaries with more choice and control when submitting second charge business through this new proposition.

“This can only enhance the benefits and merits of second charge mortgages whilst complementing our existing distribution channel.”

Alan Cleary, Precise Mortgages’ managing director added: “It’s great news that Legal & General Mortgage Club is now offering their members direct access to our second charge products.

“Second charge lending is a growing market with excellent opportunities for mortgage intermediaries.

“The FCA states that they expect the vast majority of second charge sales to be on an advised basis – this is undoubtedly an area where intermediaries excel.”